Conservatives Attack on Contractors
The Conservative Government are so keen on contractor bashing that they have decided to completely ignore promises that they made to the House of Lords.
Why would that surprise anybody when they completely reversed their policy on IR35 when the y won the 2010 election?
However, we didn’t see the full force of the Government’s contractor bashing till they managed to get rid of the LibDems as partners.
Putting All Contractors On The Payroll
Government sources have leaked to the Mail and Guardian that they intend to make all contractors who work for a company for more than a month to go on the payroll of that company.
These proposals are likely to be broadcast in the Autumn Statement later this month.
However, these proposals have come completely out of the blue for those who sit with HMRC on the IR35 Forum. There was no consultation at all on it, despite promises given to the House of Lords that they would consult with the panel.
APSCO Slam IR35 Proposals
APSCo, the repreesentatives of the UK’s recruitment companies, is on the panel and has raised grave reservations about the idea that “engagers (either employers or intermediaries) would be responsible – and therefore liable – for deciding whether a contractor was subject to IR35 and forced to adopt the ‘supervision, direction or control’ test”.
However, this new proposal is completely new to them.
They have joined contractors group IPSE in slamming the proposals.
Said Samantha Hurley of APSCo, who sits on he IR35 Forum, “These leaked proposals show a wilful disregard for the concerns raised in APSCo’s and other stakeholder responses” She also gave evidence to a House of Lords select committee on the use of Personal Services Companies ( PSCs) last year.
House of Lords Ignored
She continued, “One of the main recommendations that came out of the House of Lords Select Committee on PSCs was that HMRC should liaise more closely with the IR35 forum to ensure that proper engagement with business and relevant stakeholders was taking place before any decisions were made.”
“HMRC has NOT been liaising with the forum in the way that they have been told to – and in the way that they assured the House of Lords that they would”.
IR35 Business Entity Tests
HMRC and the Government have ‘previous’ here with the now infamous and defunct IR35 Business Entity Tests, guidelines to a contractor’s IR35 status which virtually every contractor would fail.
Said Samantha, “We have already seen how disastrous the now defunct Business Entity Tests were in determining risk in relation to IR35, and without proper consultation with the business community, this tool is destined to go the same way”.
Lets hope so, as she says “The consequences of an inappropriate status test could be devastating to the professional flexible labour market and UK plc.”
Failed Promises to Contractors
The gloves are off now as regards the Conservative Government and contractors in a way not seen since New Labour brought in IR35 to the fury of contractors then.
The Conservatives came in during 2010 with winks and nods to contractors that they would abolish IR35.
Instead they have done the opposite and are making IR35 much worse than Labour ever did.
The Final Solution for UK Contractors
With the LibDems gone the Conservative Government has now become more rabid in its attack on UK Contractors.
If they succeed in this, it will destroy contracting as a profession in the UK.
It will also show the supposed party of business as being just the party of big business and hedge funds and an enemy of small businesses.
They have to decide if they want to throw away the support of hundreds of thousands of contractors in constituencies all over the UK.
Limited Partnerships for Contractors
With Umbrella Companies and Personal Service Companies being attacked by the Chancellor, the new kid on the block could be Limited Partnerships.
Find out more by clicking on Limited Partnerships for Contractors where contractors can retain 85% of their income.